JESSE BRUN

As the city of Newmarket continues to expand, many home builders and home developers are looking for alternative construction lending companies to finance their projects since traditional banks have strict guidelines compared to alternative construction lending companies. In this article, we will take at how alternative construction lending companies in Newmarket, ON can help you finance your next construction project.

Construction Lending companies in Newmarket, ON

Alternative construction lending companies are also known as private construction lenders. Not all private lenders specialize in construction lending but some do. Most private lenders will work with reputable mortgage agents that help with the construction lending process. The construction lending is typically broken down into several disbursements, which are made at specific stages of the construction process. There are several construction lending companies(private construction lenders) in Newmarket ON.

Why choose our mortgage office in order to get construction financing from the best private construction lending company?

If you are tired of dealing with banks and not getting the financing support you need, we work with the best construction lenders in Newmarket ON. Our construction lenders in Newmarket, ON are competitive and they support many home builders and developers. Our lenders also have advanced methods to quickly fast-track the approval process. As a bonus, our lenders do not have any credit score, income, or presale requirements.

If your project is denied financial support by the bank or if you want to complete more projects faster, we are at your service to help you. Call (888)878-4660 and chat with us for an expert opinion about your project.

We are confident that when you connect with us, we can help to remove all headaches and hassles to get you the money to start your construction or development project as soon as possible. If you have money problems for your profitable projects, we have solutions.

Feel free to visit our construction lending website which shows in more details our private construction lender solutions for home builders and developers in Newmarket ON. The website is: www.ezconstructioncapital.com

Our mortgage office specializes in providing bad credit construction loans in Newmarket, ON. We have years of experience working with individuals who have bad credit, and we understand the challenges that you may be facing.

When you choose our mortgage office for your bad credit construction loan, you can expect:

• Flexible eligibility requirements
• Personalized service
• Experience construction mortgage agent
• Fast construction approvals
• Expert advice& guidance

In Canada, a construction draw mortgage is a popular financing option for builders and developers. This type of mortgage loan releases funds to the borrower at different stages of the construction process.

Typically, a construction draw mortgage is divided into three draws:

1. First Draw (Weather Tight): This draw is given when the construction reaches the "weather-tight" stage, which means the building has a roof, windows, and exterior doors that can keep out the weather. The borrower can use this draw to pay for the completion of the exterior of the home, such as the foundation, framing, roofing, and exterior finishes.
2. Second Draw (Sheetrock Ready): The second draw is issued when the construction reaches the "sheetrock ready" stage, meaning the interior walls are ready for drywall installation. This draw is meant to cover the costs associated with completing the interior of the home, such as insulation, electrical work, plumbing, and drywall.
3. Final Draw (98% or 100% Complete): The final draw is given when the construction project is either 98% or 100% complete, depending on the lender's policies. This draw is intended to cover the remaining costs of the project, such as landscaping, paving, and final finishes.

During the construction period, the borrower pays interest only on the funds that have been drawn from the construction draw mortgage, not on the entire loan amount. However, the interest rate for a construction draw mortgage is generally higher than for a standard mortgage loan due to the higher risk associated with construction projects. The lender may also conduct inspections of the construction site to ensure that the work has been completed before releasing each draw.

Below is a list of words that are associated with getting a construction loan. We are providing you the list along with their definitions to help you in your construction journey:

1. Equity: the difference between the value of a property and the amount of money owed on any outstanding loans.
2. Draw schedule: a timeline of when and how much money will be disbursed during the construction process, usually based on certain milestones being met.
3. Builder's risk insurance: insurance that protects against damage or loss during the construction process.
4. Certificate of occupancy: a document issued by a local government agency that certifies that a newly constructed building meets all local building codes and is safe for occupancy.
5. Construction contract: a legal agreement between a property owner and a contractor that outlines the terms and conditions of a construction project.
6. Disbursement: the process of releasing funds from a construction loan to pay for materials, labor, and other expenses.
7. Closing disclosure: a document that outlines the final terms of a mortgage loan, including the interest rate, closing costs, and other fees.
8. Loan-to-value ratio: a comparison of the amount of money borrowed to the value of the property being purchased.
9. Interest-only loan: a type of loan in which the borrower only pays interest for a set period of time, with the principal due at the end of the loan term.
10. Lien: a legal claim against a property, usually filed by a creditor who is owed money by the property owner.
11. Construction lien waiver: a document signed by a contractor or subcontractor that waives their right to file a lien against a property in exchange for payment for their services.
12. Construction-to-permanent loan: a type of mortgage that allows borrowers to finance both the construction and the long-term financing of a new home or other real estate project.
13. Building permit: a document issued by a local government agency that authorizes the construction of a new building or renovation of an existing structure.
14. Zoning laws: regulations that dictate how land can be used in a given area, typically set by local governments.
15. Construction contingency: a reserve of funds set aside in case of unexpected expenses that may arise during the construction process.
16. Mortgage broker: a middleman who helps borrowers find and apply for mortgages, typically by working with a network of lenders.
17. Appraisal: an estimate of the value of a property, typically done by a professional appraiser.
18. Title insurance: insurance that protects the lender and/or the homeowner against any title defects or disputes that may arise.
19. Closing costs: the fees associated with finalizing a mortgage or real estate transaction, including things like appraisal fees, title insurance, and attorney fees.
20. Inspection: a process in which a professional inspector examines a property to ensure that it meets all relevant safety codes and standards.
21. Title search: a process in which a title company reviews public records to ensure that there are no outstanding liens or other claims against a property
22. Subcontractor: a professional hired by a contractor to perform specific tasks, such as electrical or plumbing work.
23. Certificate of substantial completion: a document issued by a project manager or inspector that certifies that a construction project has been completed to a certain degree.
24. Blueprints: detailed plans for a construction project, typically drawn up by an architect or engineer.
25. Loan servicing: the process of collecting loan payments, managing escrow accounts, and other administrative tasks related to mortgage loans
26. Change order: a written document that outlines any changes to the original scope of a construction project, typically used to update project plans and budgets.
27. Surety bond: a type of insurance that guarantees that a construction project will be completed according to the terms of a contract.
28. Balloon payment: a large, one-time payment due at the end of a loan term, typically used in conjunction with interest-only loans or other non-traditional mortgage products.
29. Retainage: a portion of a construction payment that is withheld until the project is complete, typically used as a form of security against any potential defects or delays.
30. Loan origination: the process of applying for and obtaining a mortgage loan.
31. Escrow: a financial account held by a third party, typically used to hold funds for property taxes, insurance, and other expenses.
32. Homeowner's insurance: insurance that protects against damage to a home or other property, typically required by lenders as a condition of a mortgage loan.